Luxury Car Rental Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 43.42 Billion |
| Market Size (2029) | USD 60.91 Billion |
| CAGR (2024 - 2029) | 7.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Luxury Car Rental Market Analysis
The Luxury Car Rental Market size is estimated at USD 43.42 billion in 2024, and is expected to reach USD 60.91 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).
Over the medium term, there has been a growing demand for luxury car rental services in line with the substantial rise in the number of airports and passengers. The expansion of airports is expected to bring about a favorable effect on the car rental industry over the forecast period by fueling its growth and creating new prospects for luxury car rental businesses. This expansion will improve accessibility and make traveling more convenient, thus benefitting luxury car rental services.
Car rental companies have expanded their offerings to include high-end luxury sedans, elegant SUVs, and spacious multi-utility vehicles (MUVs) as part of their rental fleet. These vehicles are priced approximately 30-35% higher than economy and budget cars, owing to their premium comfort and prestigious brand reputation. However, the demand for luxury/premium car rentals worldwide has been somewhat restricted due to the elevated rental costs.
The demand for luxury car rentals is increasing in many countries, partly due to the availability of luxury cars at hotels and resorts. Additionally, the market is expected to experience significant growth during the forecast period due to increasing international business activities across major regions.
Luxury Car Rental Market Trends
Online Booking Holds a Major Market Share
The widespread use of smartphones and the growing urban population have created a favorable environment for the emergence of online luxury car rental services in recent years. This trend has significantly improved the accessibility and convenience of luxury car rentals for both residents and visitors, offering them a wider range of choices for traveling and experiencing the country.
It also offers extra capabilities for monitoring the real-time operation, performance, and maintenance of rental vehicles. These features are incredibly valuable for drivers and fleet managers as they allow for more effective identification of risks and timely improvements to rental services.
During peak holiday seasons, there is a growing preference among renters to book luxury cars online. This trend is driven by the increasing use of smartphones for online tourist car bookings. As a result, the demand for online car rentals is on the rise, leading to an increase in the number of users opting for online booking channels.
The popularity of online luxury car bookings is steadily increasing worldwide, largely driven by the widespread use of smartphones and a growing preference for online booking among users. Countries like Germany, the United Kingdom, and France are renowned for attracting millions of tourists annually.
The use of online booking platforms is significant for offering a wide selection of vehicles and improving convenience for tourists by enhancing connectivity. Rental companies at airports offer online platforms that consolidate all the best deals in one place, making it easy for travelers to search and find the luxury car that suits their needs. Additionally, these companies provide an easy-to-use search form on their websites, allowing customers to view available options and rental costs based on both days and hours.
In line with the global developments mentioned above, the demand for luxury car rental services is likely to grow over the coming years.
Asia-Pacific Witnessing Major Growth
The luxury car rental market in Asia-Pacific is expanding due to a variety of factors. These include the ongoing urbanization of the region, the increasing number of millennials, enhancements in mobility infrastructure, and a surge in tourism activities.
With the continual growth of the urban population and the enhancement of road transportation infrastructure, there is a rising need for personal mobility. As a result, there has been an increased demand for luxury car rental services, offering consumers a practical and cost-effective transportation alternative.
The Indian luxury car rental market is experiencing remarkable growth due to increased government investments in the tourism industry and a rise in the influx of international visitors.
Due to the increasing number of tourists coming to India, there is a growing need for luxury car rental services. These services offer tourists the freedom to plan their travel at their own pace rather than being restricted by the fixed itineraries of travel agencies.
In addition, individuals traveling for business and those attending conferences often depend on rental cars, which are typically organized by event planners, to fulfill their transportation requirements while they are in India.
Given the aforementioned advancements in the region, it is probable that the luxury car rental market will experience growth in the forecast period.
Luxury Car Rental Industry Overview
The luxury car rental market is dominated by several key players, such as Hertz Corporation, Sixt SE, Avis Budget Group Inc., and Europcar International. The rapid expansion of car rental services across several regions is likely to result in significant growth for the market during the forecast period. For instance,
• December 2023: Luxury Escapes partnered with CarTrawler to offer customers car rental options alongside holiday bookings for the first time. The partnership grants access to a variety of high-end and affordable vehicles, including electric ones, at competitive prices.
• October 2023: Enterprise Holding Inc. launched a new era of mobility with its luxury car rental services, now available worldwide. The company has extended its top-tier services to European, North American, and Asian countries.
Luxury Car Rental Market Leaders
-
The Hertz Corporation
-
Europcar International
-
Avis Budget Group Inc.
-
SIXT SE
-
Enterprise Holdings, Inc.
*Disclaimer: Major Players sorted in no particular order
Luxury Car Rental Market News
- March 2024: Hype, a luxury traveler company based in Bengaluru, India, extended its luxury car rental services nationwide. With this expansion, the company broadened its offerings, providing compelling rates for premium car rental services throughout the country.
- January 2024: Sixt, a premium mobility service provider, entered an agreement with Stellantis, a leading automaker. As per the agreement, Sixt has the option to purchase up to 250,000 vehicles over the successive three years for its rental fleet in corporate countries across Europe and North America.
Luxury Car Rental Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rising Smartphones and Internet Penetration Opening New Market Avenues
4.2 Market Restraints
4.2.1 Shifting Preference Toward Public Transportation May Hinder Market Growth
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 By Vehicle Model Style
5.1.1 Hatchback
5.1.2 Sedan
5.1.3 Sport Utility Vehicles
5.1.4 Multi-purpose Vehicles
5.2 By Rental Duration
5.2.1 Short-term
5.2.2 Long-term
5.3 By Booking Type
5.3.1 Online Booking
5.3.2 Offline Booking
5.4 By Drive Type
5.4.1 Self-driven
5.4.2 Chauffeur-driven
5.5 By Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.1.3 Rest of North America
5.5.2 Europe
5.5.2.1 Germany
5.5.2.2 United Kingdom
5.5.2.3 France
5.5.2.4 Italy
5.5.2.5 Spain
5.5.2.6 Rest of Europe
5.5.3 Asia-Pacific
5.5.3.1 China
5.5.3.2 India
5.5.3.3 Japan
5.5.3.4 South Korea
5.5.3.5 Rest of Asia-Pacific
5.5.4 Rest of the World
5.5.4.1 South America
5.5.4.2 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 The Hertz Corporation
6.2.2 Europcar International
6.2.3 Avis Budget Group Inc.
6.2.4 SIXT SE
6.2.5 Enterprise Holdings Inc.
6.2.6 Zoomcar Ltd
6.2.7 Luxury Car Rentals LLC (Resla)
6.2.8 Blue Car Rental ehf
6.2.9 Friends Car Rental LLC
6.2.10 VIP Rent A Car LLC
6.2.11 eZhire Technologies FZ LLC
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Luxury Car Rental Industry Segmentation
Luxury car rental involves renting high-end vehicles from rental service providers for travel, leisure, or business purposes on an hourly or longer-term basis, offering a flexible transportation solution without the commitment of ownership.
The luxury car rental market is segmented by vehicle model style, rental duration, booking type, drive type, and geography. By vehicle model style, the market is segmented into hatchbacks, sedans, sports utility vehicles, and multi-purpose vehicles. By rental duration, the market is segmented into short-term and long-term. By booking type, the market is segmented into online booking and offline booking. By drive type, the market is segmented into self-driven and chauffeur-driven. By geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World. For each segment, the market sizing and forecast have been done based on the value (USD).
| By Vehicle Model Style | |
| Hatchback | |
| Sedan | |
| Sport Utility Vehicles | |
| Multi-purpose Vehicles |
| By Rental Duration | |
| Short-term | |
| Long-term |
| By Booking Type | |
| Online Booking | |
| Offline Booking |
| By Drive Type | |
| Self-driven | |
| Chauffeur-driven |
| By Geography | ||||||||
| ||||||||
| ||||||||
| ||||||||
|
Luxury Car Rental Market Research FAQs
How big is the Luxury Car Rental Market?
The Luxury Car Rental Market size is expected to reach USD 43.42 billion in 2024 and grow at a CAGR of 7% to reach USD 60.91 billion by 2029.
What is the current Luxury Car Rental Market size?
In 2024, the Luxury Car Rental Market size is expected to reach USD 43.42 billion.
Who are the key players in Luxury Car Rental Market?
The Hertz Corporation, Europcar International, Avis Budget Group Inc., SIXT SE and Enterprise Holdings, Inc. are the major companies operating in the Luxury Car Rental Market.
Which is the fastest growing region in Luxury Car Rental Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Luxury Car Rental Market?
In 2024, the Asia Pacific accounts for the largest market share in Luxury Car Rental Market.
What years does this Luxury Car Rental Market cover, and what was the market size in 2023?
In 2023, the Luxury Car Rental Market size was estimated at USD 40.38 billion. The report covers the Luxury Car Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Luxury Car Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Luxury Car Rental Industry Report
Statistics for the 2024 Luxury Car Rental market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Luxury Car Rental analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
